What’s going on with Amazon?
Has anyone noticed the changes recently? If you’re in the
business, you’ve noticed. The Front Page has totally changed. Product Detail Pages are really different.
Has Amazon gone crazy?
Has the advertising department lost their collective minds? Hmm?
Maybe, but probably not. Their advertisement gross revenue has gone up 33% in the last year. Actually, up to $10 Billion this year. Maybe a sign of a global company controlling us all, or a sign of capitalism at work. Some have suggested that Amazon wants us to buy less. Is that correct? Well, maybe.
Here are the nuts and bolts.
- Front Page Impulse deals are gone
- Front Page Recommendations are gone
- Front Page Offering all digital stuff (streaming, kindle audiobooks, prime video movies)
- Product Detail pages frequently bought together are gone replaced by sponsored ads.
- Product Detail pages ‘product recommendations’ are gone replaced by sponsored ads.
- Brands discount coupon codes are gone.
Does Amazon really want us to buy less?
I think the answer is complicated and probably,yes and no. They definitely want us to buy less physically shipped product, less product that takes up space in their warehouse. But do they want us to spend less money? Well, I think we all know the answer to that. Why are they trying to shape our buying patterns? “Covid 19, right?” It seems to be the answer to every question.
A. Warehouse space. During the crisis, they have become a primary provider of essential goods.
a. Millions more online shoppers.
b. Remember, Amazon suspended all inventory replenishment orders of non-
essential goods until recently and are slowly reintroducing that feature to various
products.
c. They have had notices on the web site of slower shipping to be expected.
a. Millions more online shoppers.
b. Remember, Amazon suspended all inventory replenishment orders of non-
essential goods until recently and are slowly reintroducing that feature to various
products.
c. They have had notices on the web site of slower shipping to be expected.
B. Product flow
a. If product shipment becomes too slow then their business model is severely
disrupted.
b. Remember that Amazon has hired, or is hiring, 175,000 new workers.
c. So, Amazon is actually trying to slow ‘physical product’ impulse buying while
remaining the go to source for essential items.
C. Profit
a. Providing the needed digital content for currently quarantined millions
b. Cheaper to move digital content than actual product
c. Reduced profit margins on sale items means reduced Amazon % profit
d. Replaced free recommendations on detailed pages with paid advertisement
Finally, what are our recommendations for you at this time?
Nothing you can do about what Amazon sells and where they sell it so don’t worry about the Front Page.
Consider alternatives to discount coupons, if you often use them. But it feels like that this removal is also temporary. Spend some time considering adding a Sponsored Product Campaign. Perhaps schedule a phone session with Marknology.com to discuss strategy.
Consider alternatives to discount coupons, if you often use them. But it feels like that this removal is also temporary. Spend some time considering adding a Sponsored Product Campaign. Perhaps schedule a phone session with Marknology.com to discuss strategy.
Stay Safe & Be Well